Mahindra and Mahindra, strongly believing in their new project, have approved an investment of INR 12,000 crore over the next three years. They even plan to sell some of the assets associated with their EV car business to the Mahindra Electric Automobile (MEAL) electric unit for INR 796 crore. The board of M&M is highly confident about its ability to generate enough cash flow, along with the MEAL, to cover its capital requirements. Therefore, they mentioned that they would not raise additional capital.
However, the company has already made deals with BII (British International Investments) and Temasek in past years. As per the deal, BII promised INR 1,925 crore, and Temasek will invest INR 1,200 crore. Out of this, BII has already invested INR 1,200 crore, and Temasek invested around INR 300 crore and will invest the remaining 900 crore as per the decided timeframe. Nevertheless, the company extended the timeline for the remaining 725 crore investment from BII.
Between FY25 and FY27, Mahindra & Mahindra (M&M) intends to make these substantial investments, focusing on developing new vehicles and expanding production capacity. In detail, the SUV business segment is set to receive an investment of INR 8,500 crores, while INR 4,000 crores will be allocated to commercial vehicles. Additionally, M&M plans to invest INR 5,000 crores in its farm equipment business during this period.
In the words of the Managing Director of Mahindra & Mahindra Ltd., Anish Shah, “The focus is on ICE and electric vehicles. ICE is important to us, and we will continue to invest in it. In electric vehicles, we feel we can be in a dominant position. We have the technology and with the products launched, we can become a significant player in the space. This is what is causing us to invest in both.”
